North Sea Oil - Definitely Not Dead Yet

Several established companies in the North Sea Basin have been selling local assets to smaller, more streamlined companies better suited to the scale of operations. Over the last few months, Shell and BP have concluded deals worth billions of dollars with the likes of Siccar Point, Chrysaor and Neptune. That means there’s a growing group of dynamic and innovative organisations currently operating in the North Sea; now is the time to get on board!

Several established companies in the North Sea Basin have been selling local assets to smaller, more streamlined companies better suited to the scale of operations. Over the last few months, Shell and BP have concluded deals worth billions of dollars with the likes of Siccar Point, Chrysaor and Neptune. That means there’s a growing group of dynamic and innovative organisations currently operating in the North Sea; now is the time to get on board!

According to Wood McKenzie, there’s something of an ‘exploration renaissance’ happening in the North Sea oil and gas industry at the moment, partly fuelled by the discovery of the Glendronach and Glendorm natural gas fields in January of this year.

More new drilling projects across the North Sea were approved in 2018 than in the previous three years combined. And alongside a 20% increase in North Sea oil and gas production over the last five years - which is remarkable for a mature field, according to expert Professor Paul de Leeuw - global demand for oil is growing at circa 1.3 million barrels per day.

Operating companies - news highlights:

Chevron’s North Sea assets have been bought up by Ithaca Energy; the deal guarantees extraction for at least the next decade

Equinor recently awarded Aberdeen-based firm Wood the contract for designing their new facilities in the North Sea

Boskalis has redoubled its commitment to Aberdeen with recent guarantees of $100M future business

Total’s new $4.5B field in the North Sea’s UK Waters is expected to peak in the early 20s; if predictions are accurate, it could account for 10% of UK Gas demand

Johan Sverdrup, operated by Equinor, is the largest single startup oil-field in the North Sea in 20 years

CNOOC International is expanding in the North Sea: the company accounts for 25% of UK oil production and 10% of the country’s entire energy needs.